"We are going to provide now a very cost effective solution for their pan-India requirements. We are going to share the resources of each other, which will ultimately bring down the cost of operations," said R.K. Upadhyay, chairman-cum-managing director (CMD) of BSNL.

Both companies will use each other's infrastructure like ducts, buildings, towers, intelligent network services and toll free services. This will help BSNL and MTNL to concentrate more on improving customer services. Seamless mobile services with customized pan-India plans will be offered, he said.

MTNL CMD A.K. Garg said MTNL is being developed as network and system integrator for providing total telecom and IT solutions to enterprise customers. Particularly, small and medium business customers will be served through managed services.

BSNL operates mobile, land line and internet services in 20 telecommunications circles in India, while MTNL operates in Delhi and Mumbai zones.